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First Trust Specialty Finance and Financial Opportunities Fund (FGB)
Investment Objective/Strategy - The First Trust Specialty Finance and Financial Opportunities Fund is a non-diversified, closed-end management investment company. The Fund's primary investment objective is to seek a high level of current income. The Fund seeks an attractive total return as a secondary objective. The Fund will seek to achieve its investment objectives by investing at least 80% of its Managed Assets in a portfolio of securities of specialty finance and other financial companies that the Fund's sub-advisor believes offer attractive opportunities for income and capital appreciation.
There can be no assurance that the Fund's investment objectives will be achieved.
Fund Overview
TickerFGB
Fund TypeFinance
Investment AdvisorFirst Trust Advisors L.P.
Portfolio Manager/Sub-AdvisorConfluence Investment Management LLC
Investor Servicing AgentBNY Mellon Investment Servicing (US) Inc.
CUSIP33733G109
Fiscal Year-End11/30
ExchangeNYSE
Inception5/25/2007
Inception Price$20.00
Inception NAV$19.10
Current Fund Data (as of 10/22/2014)
Closing NAV1$7.74
Closing Share Price2$8.07
Premium to NAV4.26%
Total Managed Assets$135,656,555
Common Shares Outstanding14,294,917
Dividend FrequencyQuarterly
Dividend Per Share Amt3$0.1725
Distribution Rate48.55%
Daily Volume49,814
Average 30-Day Daily Volume58,901
Closing Share Price 52-Week High/Low$8.85 / $7.54
Closing NAV 52-Week High/Low$8.75 / $7.32
Expense Ratios (as of 5/31/2014)
Annual ExpensesPercent of
Net Assets
Percent of
Managed
Assets
Management Fees1.22%1.00%
Other Expenses
0.30%
0.26%
Total Operating Expenses1.52%1.26%
 
Leverage Costs0.18%0.15%
 
Total Annual Expenses1.70%1.41%
 
Leverage costs include interest, fees and any upfront/offering costs associated with borrowings by the Fund.
Top 10 Holdings (as of 8/31/2014)7
Holding Percent
Ares Capital Corp. 9.01%
Golub Capital BDC, Inc. 6.42%
PennantPark Investment Corp. 5.54%
THL Credit, Inc. 5.27%
New Mountain Finance Corp. 5.17%
TCP Capital Corp. 5.10%
Hercules Technology Growth Capital 5.02%
Medley Capital Corp. 4.96%
CYS Investments, Inc. 4.66%
Solar Capital Ltd. 4.19%
Asset Type Breakdown (as of 8/31/2014)7
  Asset Percent
Common Stocks - Business Development Companies 83.43%
Common Stocks 14.13%
Master Limited Partnership 2.44%
Share Price and NAV History (Since Inception)
Past performance is not indicative of future results.
% Premium/Discount (Since Inception)
Cumulative Total Returns (as of 9/30/2014)5
Period Share Price NAV
3 Months 5.20% -7.50%
1 Year 11.56% 0.97%
3 Years 81.41% 56.02%
5 Years 139.14% 96.10%
Year to Date 13.30% -3.56%
Inception to Date -9.31% -13.10%
Calendar Year Returns (as of 12/31/2012)5
Period Share Price NAV
2008 -61.47% -57.37%
2009 79.02% 51.07%
2010 38.95% 36.72%
2011 -9.95% -5.42%
2012 34.84% 25.74%
Average Annual Returns (as of 9/30/2014)5
Period Share Price NAV
3 Years 21.96% 15.98%
5 Years 19.05% 14.42%
Inception to Date -1.32% -1.89%
Leverage Information (as of 10/22/2014)6
Total Net Assets with Leverage$135,656,555
Amount Attributable to Common Shares$110,656,555
Amount Attributable to Preferred Shares$0
Amount Attributable to Other Borrowings$25,000,000
Leverage (% of Total Net Assets)18.43%
Industry Breakdown (as of 8/31/2014)7
  Industry Percent
Capital Markets 86.63%
Real Estate Investment Trusts (REITs) 10.68%
Diversified Financial Services 2.69%
Footnotes
1 The NAV represents the fund's net assets (assets less liabilities) divided by the fund's common shares outstanding.
2 Fund shares are purchased and sold on an exchange at their share price rather than net asset value (NAV), which may cause the shares to trade at a price greater than NAV (premium) or less than NAV (discount).
3 Most recent distribution paid or declared through today's date. Subject to change in the future.
4 Distribution rates are calculated by annualizing the most recent distribution paid or declared through today's date and then dividing by the most recent market price. The distribution consists of the sum of net investment income, net realized short-term capital gains, net realized long-term capital gains, and return of capital. Distribution rates may vary. Any distribution adjustment will not be reflected until after the declaration date for the next distribution. See the fund's 19a-1 Notices, if any, located under the "News & Literature" section of the website for estimates of distribution sources. Final determination of the source and tax status of all distributions paid in the current year will be made after year-end.
5 Total return is the combination of reinvested dividend income and reinvested capital gains distributions, at prices obtained by the Dividend Reinvestment Plan, if any, and changes in the NAV and Share Price. The NAV total return takes into account the fund's total annual expenses and does not reflect sales load. Past performance is not indicative of future results.
6 Leverage is a technique where a closed-end fund's manager borrows assets at one rate and invests the proceeds from the borrowed assets at another rate, seeking to increase yield and total return. Use of leverage can result in additional risk and cost, and can magnify the effect of any losses.
7 Market value information used in calculating the percentages is based upon trade date plus one recording of transactions, which can differ from regulatory financial reports (Forms N-CSR and N-Q) that are based on trade date recording of security transactions. Holdings are subject to change.

Risk Considerations

The fund is subject to risks, including the fact that it is a non-diversified closed-end management investment company. Investment return and market value of an investment in the fund will fluctuate. Shares, when sold, may be worth more or less than their original cost.

The fund invests in business development companies (BDCs) which may be subject to a high degree of risks, including management's ability to meet the BDC's investment objective, and to manage the BDC's portfolio when the underlying securities are redeemed or sold, during periods of market turmoil and as investors' perceptions regarding a BDC or its underlying investments change.

Investing in real estate investment trusts (REITs) involves certain unique risks in addition to investing in the real estate industry in general. REITs are subject to interest rate risk and the risk of default by lessees or borrowers.

The fund may invest in a variety of other mortgage-related securities. Rising interest rates tend to extend the duration of mortgage-related securities, making them more sensitive to changes in interest rates, and may reduce the market value of the securities. In addition, mortgage-related securities are subject to the risk that borrowers may pay off their mortgagees sooner than expected, particularly when interest rates decline. This can reduce the fund's returns. The fund's investments in other asset-backed securities are subject to risks similar to those associated with mortgage-backed securities, as well as additional risks associated with the nature of the assets and the servicing of those assets.

Because the fund is concentrated in the financials sector, it will be more susceptible to adverse economic or regulatory occurrences affecting this sector, such as changes in interest rates, availability and cost of capital funds, and competition.

Use of leverage can result in additional risk and cost, and can magnify the effect of any losses.

The risks of investing in the fund are spelled out in the prospectus, shareholder report and other regulatory filings.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value
 
First Trust Portfolios L.P.  Member SIPC and FINRA.
First Trust Advisors L.P.
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